European Union industry commissioner said on Friday that the region's car industry should not expect subsidies from the state, but should take up the challenge of the financial crisis by itself.

EU Industry Commissioner Guenter Verheugen told a press briefing after emerging from an informal ministerial meeting in Brussels that automakers should get better access to investment cash to conduct innovation, but the EU would not distort the global car market by funding over-production.

"The primary responsibility to respond to these challenges rests with industry itself," said a conclusion of the meeting which reflected the consensus reached by industry ministers from the 27 EU member states.

The ministers also encouraged carmakers "to take all necessary action to address structural problems such as overcapacity and the need to invest into innovative technologies."

However, given the importance of the industry for the European economy and the fact that the sector has been hit hard by the current crisis, "public support for this sector is decisive as reflected in the European Economic Recovery Plan and subsequent national programs initiated or planned by member states," said the conclusion.

It is necessary to support the industry to overcome short-term problems, while ensuring the long-term competitiveness of the sector, said the ministers, adding that this requires clear focus on innovation ensuring high-tech solutions delivering in particular fuel efficiency and CO2 reduction.

Such support needs to be effective and coordinated, and respect key principles such as open global markets, fair competition, better regulation as well as cooperation and transparency, the ministers noted, stressing that "any race for subsidies is to be avoided."

In 2008 there were about 8 percent fewer cars sold in the EU as compared with 2007, according to a report released on Wednesday by the European carmaker association.

Verheugen warned that the car market would get worse this year with another 10 to 20 percent fall in sales.

(Xinhua News Agency January 17, 2009)